The Federal Reserve on Wednesday said it rejected the capital plans of Citigroup and four other lenders, and Bank of America and Goldman Sachs were forced to adjust their plans to get approval. Citi's plan was rejected because there was not sufficient improvement in capital-planning practices that supervisors had previously identified as needing improvement. Three new firms to the testing -- the U.S. arms of HSBC Holdings , the Royal Bank of Scotland and Santander were also rejected due to significant deficiencies in their capital-planning processes, with Santander's problems also labelled "widespread." Zions was rejected on quantitative grounds that were identified last week, and no qualitative problems were found. The remaining 23 banks including J.P. Morgan Chase and Morgan Stanley had their initial capital plans approved.Citibank shares fell 4 percent on after hours market.